What is a credit score? A credit score, sometimes referred to as a FICO score is a numerical representation of data that is found in your credit report. FICO credit scores look a lot like SAT scores and range from three hundred, which are rare, to eight hundred and fifty, which are equally rare. These scores are extremely powerful. In the last year only, twenty five billion credit decisions were made based on FICO scores.

These were not only choices about whether you will be approved for a new credit card but additionally how much you could borrow, whether you will qualify for an increase in your credit line, and what sort of interest rate you’ll pay. Your credit score determines whether you will qualify to rent an apartment, whether you can get a cell phone, or whether you’ll actually get the credit card for which you’re “pre-approved.” Also, it factors into whether an employer will hire you, whether you will qualify for a cash advance, and what sort of auto insurance premium you will pay.

So that’s a pretty powerful snippet of information there. And it really is a snapshot of your bill-paying and borrowing behavior over the previous twenty four months, so as time goes by, you will have the capacity to change it for the better. Thirty five percent of your score is founded upon how well and up to date you stay on your bills.

Thirty percent is based upon how much credit you have available to you and how much of this credit that you are actually using. Ten percent is founded on your search for new credit, how recently you have opened up, or asked about opening new accounts; ten percent is the composition of your file, the percentage of your file that is bankcard debt and installment debt.

Finally, fifteen percent is a measure of the length of your credit relationships, how long you have had the cards. This way you can prioritize the cards and pick accounts that can improve your credit score first.

This article is subject to a revocable license under a Creative Commons Attribution-No Derivative Works 3.0 Unported License, which means you may freely reprint it, in its entirety, provided you include the author's resource box along with LIVE VISIBLE links (without "nofollow" tags). We may revoke the license at any time with or without cause. You must also include the credit to UberArticles.com.

Comments are closed.

Disclaimer
Uber Articles and its partner sites cannot be held
responsible for either the content nor the originality
of any articles. If you believe the article has been
stolen from you without your permission, please contact
us and we will remove it immediately. If you have a
problem with the accuracy or otherwise of the content
of an article, please contact the author, not us! Also,
please remember that any opinions and ideas presented
in any of the articles are those of the author and
cannot be taken to represent the opinions of Uber
Articles. All articles are provided for informational
purposes only. None of them should be relied upon for
medical, psychological, financial, legal, or other
professional advice. If you need professional advice,
see a professional. We cannot be held responsible for
any use or misuse you make of the articles, nor can we
be held responsible for any claims for earnings, cures,
or other results that the article might make.

Featured Articles

Anyone who regularly reads newspapers, papers and goes online will have read several articles. These can be used in many different ways. Some articles are written purely for information purposes were others are used to market websites and goods. Understanding how to write a great article can be difficult even if you are a seasoned pro. So why not take a look at the 6 stages which will enable you to learn how to write a great article.